Jiaqi Li is a Senior Economist in the Banking and Payments Department (BAP). She is a macroeconomist with research interests in banking, financial frictions and monetary transmission. Jiaqi obtained her PhD in Economics from the University of Cambridge.
Using proprietary FXC Intelligence data on quoted prices for Canadian business-to-business cross-border payments, this note finds that banks charge firms around 2–3.5% of transaction value. Prices vary considerably across banks for the same corridor, transaction amount, and year.
To what extent does a central bank digital currency (CBDC) compete with bank deposits? To answer this question, we develop and estimate a structural model where each household chooses which financial institution to deposit their digital money with.
